CircufarNo.261/95/96-CX dated 6/11/96
Subject :- Date for determination of rate of duty and tariff valuation under
Rule 9A of the Central Excise Rules, 1944 in respect of saloon
cars removed at concessional rate of duty under Notfn. 162/86-CE
dated 1/3/86, as taxis where such cars are not registered as
taxis.
1. Attention is drawn to Notification 162/86-CE dated 1/3/86, as it was prior to
28/2/1993 which granted concessional rate of duty to saloon cars provided a
certificate was required to be furnished to the satisfaction of the Assistant
Collector, (now Assistance Commissioner) from the State Transport Authority to the
effect that such saloon cars has been registered for use solely as a taxi, within
three months from the date of removal or such extended period as the Assistant
Collector may allow.
2. A doubt has arisen -regarding the relevant date for determination of the rate of
duty and tariff valuation under Rule 9A of the Central Excise Rifles; 1944 where the
saloon cars were removed at concessional rate of duty under Notification 162/86-CE
dated 1/3/86 as taxis but could not be registered as taxis, as stipulated in the
aforesaid notification, whether such saloon cars should discharge duty in terms of sub-
rule l(ii) or under Sub-rule (5) of Rule 9A of the Central Excise Rules, 1944.
3. The matter has been examined by the Board.
4. In this connection. Circular No. 14/80-CX.6 (F.No. 207/2/80-CX.6) dated 24/4/1980
may be referred (copy enclosed) wherein it has been clarified that in cases of
unauthorised, illegal or clandestine removals, duty will be payable in terms of sub-
rule (5) of Rule 9A, not otherwise.
5. In the instant case where the saloon cars were cleared in accordance with the
provisions of an exemption notification cannot be regarded as unauthorised, illegal or
clandestine removals so as to attract provisions of sub-rule (5) of Rule 9A for
determination of date for ratio of duty and tariff valuation though certain conditions
thereof, were not fulfilled. It is therefore, clarified that such removals shall more
appropriately be governed by sub-rule (1) (ii) of Rule 9A of the Central Excise Rules,
1944 and the relevant date for determination of rate of duty and tariff valuation
shall be the date on which such saloon cars were removed from the factory or the
warehouse, as the case may be, and the rate of duty and tariff valuation shall be the
rate and tariff valuation in force on that date.
Sd/-
(P.K. Sinha)
Under Secretary to the Govt. of India
F.No. 20279/96-CX.6
Circular No. 14/80-CX.6 dt. the 24th April, 1980
Subject: Central Excises - Applicability of Sub-rule (1) or Sub-rule (5) of
rule 9-A in the case of clandestine removals.
I am directed to say that the question whether in the case of clandestine
removals of dutiable excisable goods without observing Central Excise formalities
demands are to be raised in terms of sub-rule l(ii) or sub- rule(5) "of rule 9-A, where
the date of clandestine removal for the factory etc. can otherwise be established, has
been examined by the Board in consultation with the Ministry of Law, The said Ministry
has opined that "....... when the goods are clandestinely removed, it cannot be said
that the goods have been cleared after the payment of duty. The expression cleared in
rule 9-A has reference to clearance after payment of duty and with gate pass. That
being the position, all cases of unauthorised and illegal removal of excisable goods
should fall under the residuary provisions, namely rule 9-A(5) which provider that
in such cases that rate of duty and tariff valuation, if any, applicable to excisable
goods shall be the rate and valuation in force, on the date on which duty is paid.".
2. It may be further clarified that the expression "cleared" used in rule 9A (I )(ii)
covers even clearances made without payment of duty under bond as the words "on
payment of duty" do not occur in rule 9A (1) (ii). In other words, where the goods have
been cleared in accordance with the provisions of the rules either wither without
payment of duty, rule 9A(l)(ii) will be attracted, while in case of unauthorised,
illegal and clandestine removal, duty will be payable in terms of rule 9A(5).
Sd/-
(K.D.Tayal)
For Secretary, Central Board of Excise & Customs
F.No. 207/2/80-CX.6
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